Vodafone 2014 Annual Report Download - page 84

Annual report on remuneration (continued)
Loss of ofce payments (audited)
Andy Halford retired on 31 March 2014. As per his contract Andy had a 12 month notice period which commenced on 1 October 2013. He worked
six months of his notice period – until the end of the nancial year. We will be making payments in lieu of notice each month for the remainder
of Andy’s notice period (1 April 2014–30 September 2014). The total of these payments will be a maximum of £350,000 (six months’ salary) subject
to mitigation if Andy were to start a new executive role at another organisation.
Andy has worked for the full 2014 nancial year and so he will receive his annual bonus payment in June 2014 (as detailed on page 78).
The 2012, 2013 and 2014 GLTI awards (made in June 2011, July 2012, June 2013 and September 2013) will be pro-rated on a time worked basis.
These awards will vest, subject to performance, at their normal vesting date, in accordance with the good leaver provisions in our share plan rules.
The 2013 and 2014 GLTI awards will lapse if Andy starts a new executive role at another organisation.
Andy will receive no further benets aside from the provision of a SIM card for his personal use at the Company’s expense for a period of three years
commencing 1 April 2014.
Payments to past directors (audited)
During the 2014 nancial year, no payments were made, or benets given, to past directors with value of greater than our de minimis threshold
(£5,000 p.a.).
Fees retained for external non-executive directorships
Executive directors may hold positions in other companies as non-executive directors and retain the fees. Andy Halford is a non-executive director
of Marks and Spencer Group plc and in accordance with Group policy he retained fees for the year of £81,250.
Assessing pay and performance
In the table below we summarise the Chief Executive’s single gure remuneration over the past ve years, as well as how our variable pay plans have
paid out in relation to the maximum opportunity. This can be compared with the historic TSR performance over the same period. The chart below
shows the performance of the Company relative to the STOXX Europe 600 Index over a ve year period. The STOXX Europe 600 Index was selected
as this is a broad-based index that includes many of our closest competitors. It should be noted thatthepayout from the long-term incentive plan
is based on the TSRperformance shown in the chart on page 79 and not this chart.
Five year historical TSR performance (growth in the value of
a hypothetical €100 holding over ve years)
300
250
150
200
100
50
0
100 137
155 170
168
190
167
215
193
267
227
Vodafone Group STOXX Europe 600 Index
03/09 03/10 03/11 03/12 03/13 03/14
Financial year remuneration for Chief Executive (Vittorio Colao) 201012011 2012 2013 2014
Single gure of total remuneration £’000 3,350 7,022 15,767 11,099 8,927
Annual variable element (actual award versus maximum opportunity) 64% 62% 47% 33% 44%
Long-term incentive (vesting versus maximum opportunity) 25% 31% 100% 57% 37%
Note:
1 The single gure reects share awards which were granted in 2006 and 2007, prior to his appointment to Chief Executive in 2008.
Change in the Chief Executive’s remuneration
In the table below we show the percentage change in the Chief Executive’s remuneration (salary, taxable benets and annual bonus payment)
between the 2013 and 2014 nancial years compared to the average for other Vodafone Group employees who are measured on comparable
business objectives and who have been employed in the UK since 2013 (per capita). Vodafone has employees based all around the world and some
of these individuals work in countries with very high ination therefore a comparison to Vodafone’s UK based Group employees is more appropriate
than to all employees.
Percentage change from 2013 to 2014
Item Chief Executive: Vittorio Colao
Other Vodafone Group employees
employed in the UK
Base salary 0% 3.7%
Taxable benets -2.6% 1.5%
Annual bonus 34.3% 53.3%
Vodafone Group Plc
Annual Report 201482
Directors’ remuneration (continued)